IGC Resources Inc.

IGC Resources Inc.

August 23, 2006 10:09 ET

IGC Resources Identifies Iron Oxide Copper-Gold Initial Drill Targets at Fraser Range, Western Australia

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 23, 2006) - IGC Resources Inc. (TSX VENTURE:IGC)(FWB:I6G)(PINK SHEETS:IGCGF) ("IGC" or the "Company") is pleased to announce that the first phase of exploration activity on the Fraser Range iron oxide copper-gold and uranium style prospect in Western Australia has been completed, culminating in the delineation of initial drill targets, at the "Endurance Prospect" and "Iron Duke Prospect". Post processing of a ground gravity survey completed last month over the prospective zone within the Fraser Range tenement package has shown two apparent gravity highs, within the northernmost area presenting the most coherent anomaly. In addition, a regional calcrete and soil sampling program has indicated anomalous gold and copper as well.

Aeromagnetic data due over the next week is expected to assist in refining the target in anticipation of a proposal for drill testing the Endurance Prospect. The Iron Duke Prospect also has a gravity high but is viewed as a secondary target at this time.

The Company considers that the combined gravity high and elevated copper (up to 32 ppm) and gold (up to 9 ppb) in the region where background is virtually zero, is evidence of a strong geological target requiring further investigation. The size of the Endurance Prospect gravity high (approximately 2 kilometers in diameter) is similar in size to Olympic Dam (Western Mining Corporation) or Carrapateena (Teck Cominco) in South Australia. Clive Hartz, IGC's President, says "We consider this anomalism to represent a target of significance and is an exciting development in the exploration history of the area. With Anglogold Ashanti reporting significant success from its Tropicana gold project to the north of us, the Fraser Range is starting to shape up as a promising new street address in exploration terms."

The Company is now in the process of developing a drilling program to test the Endurance and Iron Duke targets. A suitable drilling contractor should be selected within the next two months and a start date confirmed soon after.

To view "Figure 1. Fraser Range surface sampling and ground gravity image", please click the following link: http://www.ccnmatthews.com/docs/igc0823.doc

Information in this announcement was compiled by Mr. Dave Holden, a director of IGC, who is a Member of the AusIMM and a "Qualified Person" under Canadian National Instrument 43-101 - Standards of Disclosure for Mineral Projects.

IGC Resources Inc.'s principal business activities are the exploration, development and mining of gold, copper and uranium prospects within Western Australia, while continuing to investigate other mineral resource prospects for potential acquisition globally.

On behalf of the Board,

Clive Hartz, President & CEO

Statements in this release may constitute forward-looking statements which involve known and unknown inherent risks and uncertainties that are detailed in IGC's periodic filings with Canadian securities regulators. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results. Actual events or results could differ materially from IGC's expectations and projections.

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